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CMA Final · Indirect Tax Laws and Practice · Accounts and Records

Kapoor Ltd is appealing before the Appellate Tribunal against an order concerning supplies of 2020-21 for which the annual return due date was long past. Under section 36 proviso, how long must it retain records pertaining to the subject matter?

Records relating to the subject matter of the appeal must be kept for one year after the final disposal of the appeal, or until the normal seventy-two month period ends, whichever is later. The longer of the two periods governs the retention.

  1. AOne year after final disposal of the appeal, or the normal seventy-two month period, whichever is laterCorrect
  2. BSix months after final disposal of the appeal only
  3. CUntil the appeal is filed, after which records may be destroyed
  4. DTwo years after final disposal, regardless of the normal period

Explanation

The proviso to section 36 requires a person who is party to an appeal or other proceedings, or under investigation for a Chapter XIX offence, to retain records of the subject matter for one year after final disposal, or for the normal seventy-two month period, whichever is later. Two years and six months are not stated periods.

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